How To Create Passive Income

I often come across students with a chunk of savings who want to know how to create passive income with their money. For them, and for you today, I have some advice.

How to Create Passive Income: There’s No One System

In figuring out how to create passive income, I like to say that we’re setting up an FFA: a Financial Freedom Account. When looking at your money through this lens, it almost doesn’t matter what you do with a chunk of savings like that, as long as it’s money that’s going to work for you.

For instance, if you know that your book publishing is going to be a passive income structure, then go ahead and use it. If you know you’re going to open up a business that’s going to be systematized and leveraged eventually, and you’re going to have passive income coming from there, go for it. If you can create a situation where you’re investing and that works, then use some of it there.

Basically, what I’m saying is that anything you can do that creates financial freedom through passive income or capitalized investment income is fine.

It’s Not the System, It’s You

Now let’s get to the longer part of the story here. People lose money and make money in all kinds of investing, whether in a business, stocks, real estate, etc.

The fact of the matter is, everyone is different. There’s no system of investing that will work for everyone. Why? In my experience, people are the ones who screw up the system — it’s not the system that’s so bad.

A lot of people lose money in the system because a lot of people have terrible ways of thinking around money. They sabotage themselves and don’t follow the system.

Eighty percent of people in business lose everything. Is it the business or them? It’s them. Eighty percent of people who do anything fail at it. Is it the thing or them? It’s them.

So the answer is decide on something you want to get good at because you’re the one who’s going to have to put in the work.

Deciding What to Invest In

Here’s how you decide on how to turn your money into passive income:

Are other people doing well? The only way to know if a system works is if its developers are making money. If there are some people making money with it, then it works. “Yes, but it’s not the majority.” That’s right. If you notice, the majority is broke.

Does it resonate with you? What do you feel? If you don’t want to invest in stocks, don’t do it. My investment in stocks themselves is minimal in comparison to my other investments.Why? I’m just not the biggest fan of stocks. Some people love ’em. However, I just don’t have time to figure out a system, run it properly, and all that. Instead, I have other favorite investments that resonate with me. They’re not for everybody.

Let me give you one investment that I like that you might hate: real estate. First of all, it’s generally not as manipulated as the stock market. Manipulated means these massive companies manipulating stock prices based on whether they’re buying or selling.

I’m not saying they’re bad or good, but some of these big companies will tell all their brokers around the world to sell XYZ stock today, and they all do. Then when it’s down, they buy it.

I don’t like that whole game. I’m not even saying everybody does it. Can you still make money with stocks? Absolutely you can. A lot of people do, but I just like real estate better.

I like real estate because first of all, I can touch it. Second, I like looking at it. Third, over the long run, it will always go up. It’s a passive income structure if you buy it for positive cash flow right from the very beginning.

You say, “I don’t have a lot of money for that.” Well, I say learn how to buy positive cash flow real estate. Then learn how to buy it with very little of your own money. Soon, your investments will be making passive income for you.

Push Yourself to Learn

Regardless of which investment method you choose, the key word here is LEARN. You can learn anything, and a lot of times you can learn enough for free or next to nothing.

So LEARN real estate. It’s not that hard.

LEARN stock systems. Find ones that people do well with.

LEARN how to systemize your business.

A journey of a thousand miles starts with ONE STEP. Learning, for most, is the first one.

What are your thoughts and experiences with investments? If you want to invest but don’t, what holds you back?

While these musings aren’t intended as sound investing advice, there’s a lot we can learn from each other that can perhaps guide us along our collective journey to greater financial freedom. That means we want to hear from you! Do you have any tips on how to create passive income? Leave them in the comments!

Comments

The major block for a person when no capital is at hand but have desire to be in business what suggestion you can give . I want to be in business and in passive income business but do not have capital to begin. What one can do who has nothing but desire what guidance you would suggest?

Good Advice!!!! Build your FFA up and then take action to make it work for you !!! Action is required to move forward. Learn what you want to invest in… Think about it in today’s world. Everything you need to learn is in the palm of your Hand !!! Your Cell phone has all the learning options you could want. There are several ways on your phone. Audi book, You tub Videos, and Podcasts can be used anywhere and anytime!!!

Here are some suggestions:

Audio Book:
The Millionaire Mindset
The Education Of a Value investor
The Book on Rental Property Investing

Pod Cast:
The Investors Podcast
Bigger Pockets Podcast

Video:
Harv Eker
Bigger Pockets Webinars
Rent Like A pro

So every thing you need to learn and become a expert is all on in the palm of your hand !!!!

Create passive income through assets such as building network marketing. It is to build assets without capital that generate cash flows from the beginning. The main capital that you invest is your mentality and your learning.

Create passive or residual income isn’t easy, but it can be done through hard work and understanding how to create it. You can build it through Network Marketing if you find the right company and products or services that compete in the marketplace that has real value to the customer and customers purchase them monthly without any financial incentives. There is a company out there that fits the criteria.

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